Restaurant Group Asks N.Y. High Court to Review Adverse COVID-19 Coverage Rulings

NEW YORK — A restaurant conglomerate has asked New York’s highest court to review lower court rulings dismissing its COVID-19 coverage action filed against Westport Insurance Corp., in which they found there was no “direct physical loss or damage” to the insured properties.

Consolidated Restaurant Operations (CRO) seeks to challenge the lower courts’ conclusion that mere loss of use, without physical damage, does not trigger coverage.

Dallas-based CRO, a global restaurant group, suspended on-premises dining operations in March 2020, in compliance with government stay-at-home orders issued in response to the COVID-19 pandemic. As a result, CRO sustained heavy economic losses.